California Board of Accountancy hears petition to reinstate CPA Michael Deutchman

The California Board of Accountancy on Sept. 18 heard testimony and evidence in a petition hearing seeking reinstatement of the CPA certificate of Michael Deutchman, whose license was revoked in 2019 after findings by the Public Company Accounting Oversight Board and related proceedings.

The hearing, held during the CBA’s regular meeting and accessible via Webex, included opening remarks by CBA President Yen Tu, testimony from a character witness and the petitioner, the admission of multiple exhibit packets from both sides, and extended questioning by board members and counsel. James Kosnett, attorney for Deutchman, urged the board to hear the petitioner directly, saying, "Please don't leave this room without articulating your doubt or your concern to him," and to allow Deutchman to address any remaining concerns. Assistant counsel representing the People of the State of California (CBA enforcement) summarized the agency’s record and argued that the petitioner bore the burden of proving entitlement to reinstatement under the cited statutory provisions.

Why it matters: The board is being asked to reverse a 2019 revocation rooted in a PCAOB decision that found audit work papers had been altered ahead of inspection and assessed a $35,000 fine against Deutchman. If reinstated, Deutchman could resume providing CPA services in California; the board may consider restrictions (for example, limitations on attest work) or probation to protect the public while allowing limited practice.

Most important facts and supporting details

- Background of discipline: Board counsel summarized a long enforcement history dating to audits of 2007 that led to a 2014 PCAOB decision finding improper alterations to audit work papers and a $35,000 fine; the PCAOB and subsequent SEC and court proceedings culminated in a CBA accusation and a 2019 revocation of Deutchman’s California CPA certificate. The CBA record includes prior board denials of two reinstatement petitions (January 2023 and May 2024).

- Current petition: Deutchman submitted his third petition for reinstatement, accompanied by documentary evidence uploaded to the CBA case center and a packet of hard-copy exhibits admitted at the hearing (exhibits labeled 1–13 and A–K in the hearing record). The petitioner reported completing 49 hours of continuing education in 2025 and submitted multiple letters of recommendation and character references.

- Testimony: Gregory (Greg) Wall, a CPA and former owner of Anton & Chia LLP who testified as a character witness, said of Deutchman, "I've always found him of the utmost highest character," and described professional and personal interactions dating back roughly 20 years. Deutchman testified himself, acknowledged the board’s finding, and repeatedly stated he accepted responsibility for his role as a concurring partner, saying, "I'm taking responsibility as concurring partner," and describing steps he said he has taken since the revocation.

- Questions and concerns from the board: Members pressed Deutchman on specific matters the board relied on in past denials — notably whether he had accepted personal accountability for the document alterations, how he would respond to suspected misconduct in future practice, and whether he understood the continuing limits tied to PCAOB/SEC discipline (for instance, that reinstatement to perform public-company attest work may require separate SEC or PCAOB permission). Counsel for the CBA recommended consideration of probation and possible restrictions to protect the public if reinstatement were granted.

Process and immediate outcome

The hearing record was created by admitting the uploaded exhibits and taking sworn testimony from the witness and petitioner. Both parties rested after presenting exhibits and testimony. The board concluded the open session portion of the hearing and moved into closed session to deliberate on the petition and other closed-session matters; no final licensing decision was announced at the hearing.

Background and context

The PCAOB decision in the earlier matter (summarized in the admitted exhibits) concluded that Deutchman and others participated in altering audit work papers prior to a 2008 PCAOB inspection and that the respondents' conduct demonstrated a high degree of knowledge of the wrongfulness of the actions. The CBA’s 2019 action followed federal proceedings and adopted similar findings. Deutchman previously petitioned for reinstatement twice and was denied; the board cited lack of demonstrated rehabilitation and insufficient acceptance of responsibility in those denials.

What the record shows and what is next

The transcript and admitted exhibits establish the procedural history, Deutchman’s recent continuing-education activity and character references, and the board’s questions about rehabilitation and future public-protection safeguards. The board moved into closed session to deliberate; it had scheduled reconvening of CBA business on Sept. 19 at 9 a.m. to continue committee and board work. Any formal decision on the petition will be made in deliberation and recorded in the board’s public minutes or subsequent public action notice.